Banks must work harder to attract 'Facebook Generation'

Opinion

A study by Experian finds that 18-25 year olds get most of their financial advice from friends, family and the social media. The credit reference company has named this group the 'Facebook Generation'.

Whilst most banks have a social media presence it is too often the case that it is used for selling concert tickets and as corner of the web site with bright graphics in contrast to the boring blues and reds corporate colours elsewhere. The report indicates that banks need to make social media a central part to their communications and cover core subjects within it.

Tor Bengtsson, commercial director, contradicts the prevalent belief that this group are less financially aware than past generations and he suggests that this group will still use the same sources of information when they are older (and richer). He commented

"The social media phenomenon has revolutionised young adults' attitudes towards financial services. Lenders need a deep understanding of how these customers are interacting around their brands online if they want to succeed in this area of the market," said Tor Bengtsson, commercial director at Experian UK & Ireland. It's also critical that organisations realise that social media is the norm for this age group and the habits they've formed and expectations they've come to expect will inform decisions throughout their entire lives. Social as a way of life won't just disappear when they get older and it's only likely to get stronger.

"Social media makes young adults better informed, more able to share grievances and more open to influence from peers and financial providers than ever before," he said. They want immediate information, instant decisions, faultless customer service and the ability to manage finances on the move. Providers that fail to tick all these boxes could fall behind."